On the Expiration Date for a Call Option with Strike

question 6

Multiple Choice

On the expiration date for a call option with strike price of $10.00,premium $1.50 and the current spot price of $14.00,the holder will:

• A) buy the shares in the market place.
• B) let the option contract lapse.
• C) exercise the option.
• D) make a profit of $1.50

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Definitions:

Government Policy

The plans and actions taken by a government to achieve particular objectives, which can encompass a wide range of issues including economic, social, and foreign policy.

Environmental Damage

The detrimental impact on nature and the environment, including ecosystems, biodiversity, and human health, caused by human activities.

Semideveloped Countries

Nations that are in a transitional phase between developing and developed status, characterized by improving but not yet fully developed economic, social, and political systems.

Charles Darwin

A 19th-century naturalist and geologist known for his theory of evolution through natural selection.